There are many ways to reduce costs. In the PRODUCTIVITY linked-page, we will give you more, but for here, let's look at some ways to reduce your costs and look at some case histories:

STEEL GRADE REDUCTIONS

One of the major ways that AMERIFORM® can reduce your cost is by allowing you to go to a lower grade of steel, thus saving major costs. We work within a growing family of mills and service centers and all are concerned about helping you reduce cost as we are all under the same pressures. They work with us, to work with you, to identify major cost reduction opportunities. You see, it's because of the very unique, patented, engineered abilities of AMERIFORM®, which allows us to do this. Let's look at some case histories:

Oil Pan - CR .055

SS Tube - Exhaust

CASE HISTORIES:

A Tier 1 supplier goes from Cold Rolled to Hot Rolled steel with a saving of 5 cents/lb.

A Tier 1 supplier goes from 46.00% - 48.00% elongation steel on an oil pan which has an abnormally high reject rate to 40.34% elongation steel with a reject rate of under 1% and a savings on steel of 35 cents premium for the higher elongation steel.

A lawn & garden manufacturer goes from EDDQ to DQ thus saving $1.41 per blank.

A supplier to the appliance industry looks at reducing the nickel content on the stainless steel by 1% thus savings 10 cents plus a 2 cents/lb. premium.

An exhaust system supplier looks at reducing the steel gauge of the tubes to the better bending properties and thus a lessening in the thinning of the walls during bending.

PARTS WASHING ELIMINATED

There are opportunities outside the steel side of the business. One area of major costs is the washing of parts to remove the oils and lubricants before final assembly (on parts not needing E-coating or painting). The washing operation has many costs associated with it but rarely fully understood nor properly calculated:

• Cost of labor
• Cost of floor space
• Cost of water and energy
• Cost of storage
• Cost of chemicals
• Cost of waste and disposal
• Cost of floor space
• Rusting problems

With AMERIFORM®, you can eliminate these costs. Let's look at one case history:

CASE HISTORY:

A Tier 1 supplier of exhaust systems eliminates their washing operation thus saving over $1.5M in direct and indirect costs. Floor space then becomes available for production. Wastewater issues and fines are eliminated also.

CLEANING/DIE MAINTENANCE COSTS REDUCED

Going along with cleaning costs, visualize your plant clean and dry. Look at your cost of gloves if you are using a "wet" lubricant. One major plant spends over $500,000.00 on gloves alone. What are you spending? Do you have a floor scrubber in constant operation to clean the floors? What is your cost for that? What is your cost for die maintenance? How often do you sharpen your dies?

CASE HISTORY:

An automotive supplier reduces the parts needing to be washed by 60%. Sludge haul-off of 75 cents/gallon is eliminated. Additionally, the need for an auto floor scrubber being run on the floors is eliminated. Glove costs go dramatically down. Total estimated direct and indirect cost savings? Over $500,000.

CASE HISTORY:

At a major Tier 1 supplier, doing deep draw work, the frictional heat is reduced by 100°F or 30% with use of AMERIFORM®. One Engineer estimates that the tool life will be increased by 30% doing a straight one-to-one comparison of % of heat reduction to tool life. The Tool Room Supervisor estimates a 45% increase in tool life. The Die Maker estimates a 60% increase in tool life. We go conservative and use 30% for our cost reduction projections to help justify the change. Final tool life extension reaches over 50%.

WELDING ISSUES ARE REDUCED

Because of its unique characteristics, AMERIFORM® allows for better welding immediately after the part is stamped. Helping in porosity, and allowing for lower power needed for welding vs. wet lubricants, the cost, time, and air quality of the welding operations are enhanced with the use of this unique product.